KKR REAL ESTATE FINANCE TRUS (KREF) Stock Fundamental Analysis
NYSE:KREF - New York Stock Exchange, Inc. - US48251K1007 - REIT - Currency: USD
Overall KREF gets a fundamental rating of 4 out of 10. We evaluated KREF against 65 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. The financial health of KREF is average, but there are quite some concerns on its profitability. KREF has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
KREF had negative earnings in the past year.
In the past year KREF had a positive cash flow from operations.
KREF had positive earnings in 4 of the past 5 years.
Each year in the past 5 years KREF had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 0.17%, KREF is not doing good in the industry: 63.08% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of 0.86%, KREF is doing worse than 64.62% of the companies in the same industry.
KREF has a Return On Invested Capital of 0.40%. This is comparable to the rest of the industry: KREF outperforms 43.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.17% | ||
| ROE | 0.86% | ||
| ROIC | 0.4% |
ROA(3y)-0.1%
ROA(5y)0.53%
ROE(3y)-0.63%
ROE(5y)2.49%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
KREF has a Profit Margin of 2.04%. This is in the lower half of the industry: KREF underperforms 63.08% of its industry peers.
In the last couple of years the Profit Margin of KREF has declined.
KREF's Operating Margin of 5.83% is on the low side compared to the rest of the industry. KREF is outperformed by 61.54% of its industry peers.
In the last couple of years the Operating Margin of KREF has declined.
KREF has a better Gross Margin (30.70%) than 66.15% of its industry peers.
In the last couple of years the Gross Margin of KREF has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.83% | ||
| PM (TTM) | 2.04% | ||
| GM | 30.7% |
OM growth 3Y-50.23%
OM growth 5Y-29.01%
PM growth 3Y-62.88%
PM growth 5Y-41.56%
GM growth 3Y-20.56%
GM growth 5Y-6.79%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KREF is destroying value.
The number of shares outstanding for KREF has been reduced compared to 1 year ago.
Compared to 5 years ago, KREF has more shares outstanding
Compared to 1 year ago, KREF has an improved debt to assets ratio.
2.2 Solvency
KREF has an Altman-Z score of 0.02. This is a bad value and indicates that KREF is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.02, KREF is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
The Debt to FCF ratio of KREF is 45.68, which is on the high side as it means it would take KREF, 45.68 years of fcf income to pay off all of its debts.
KREF has a better Debt to FCF ratio (45.68) than 61.54% of its industry peers.
KREF has a Debt/Equity ratio of 3.86. This is a high value indicating a heavy dependency on external financing.
With a decent Debt to Equity ratio value of 3.86, KREF is doing good in the industry, outperforming 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.86 | ||
| Debt/FCF | 45.68 | ||
| Altman-Z | 0.02 |
ROIC/WACC0.06
WACC6.8%
2.3 Liquidity
A Current Ratio of 0.27 indicates that KREF may have some problems paying its short term obligations.
KREF has a Current ratio of 0.27. This is in the better half of the industry: KREF outperforms 64.62% of its industry peers.
A Quick Ratio of 0.27 indicates that KREF may have some problems paying its short term obligations.
KREF has a better Quick ratio (0.27) than 64.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.27 | ||
| Quick Ratio | 0.27 |
3. Growth
3.1 Past
KREF shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -308.00%.
KREF shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -34.56% yearly.
Looking at the last year, KREF shows a very negative growth in Revenue. The Revenue has decreased by -16.72% in the last year.
The Revenue has been growing by 16.21% on average over the past years. This is quite good.
EPS 1Y (TTM)-308%
EPS 3Y-55.99%
EPS 5Y-34.56%
EPS Q2Q%-138.46%
Revenue 1Y (TTM)-16.72%
Revenue growth 3Y26.7%
Revenue growth 5Y16.21%
Sales Q2Q%-19.94%
3.2 Future
Based on estimates for the next years, KREF will show a very strong growth in Earnings Per Share. The EPS will grow by 41.28% on average per year.
Based on estimates for the next years, KREF will show a decrease in Revenue. The Revenue will decrease by -5.77% on average per year.
EPS Next Y188.17%
EPS Next 2Y73.78%
EPS Next 3Y41.28%
EPS Next 5YN/A
Revenue Next Year-5.68%
Revenue Next 2Y-2.16%
Revenue Next 3Y-5.77%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for KREF. In the last year negative earnings were reported.
With a Price/Forward Earnings ratio of 8.74, the valuation of KREF can be described as very reasonable.
KREF's Price/Forward Earnings ratio is in line with the industry average.
KREF's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.74.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 8.74 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KREF is valued a bit cheaper than the industry average as 78.46% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, KREF is valued cheaper than 83.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.48 | ||
| EV/EBITDA | 159.68 |
4.3 Compensation for Growth
KREF's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as KREF's earnings are expected to grow with 41.28% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y73.78%
EPS Next 3Y41.28%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 10.99%, KREF is a good candidate for dividend investing.
With a Dividend Yield of 10.99, KREF pays less dividend than the industry average, which is at 13.93. 86.15% of the companies listed in the same industry pay a better dividend than KREF!
KREF's Dividend Yield is rather good when compared to the S&P500 average which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.99% |
5.2 History
The dividend of KREF decreases each year by -2.88%.
KREF has been paying a dividend for over 5 years, so it has already some track record.
As KREF did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)-2.88%
Div Incr Years0
Div Non Decr Years6
5.3 Sustainability
KREF pays out 803.52% of its income as dividend. This is not a sustainable payout ratio.
DP803.52%
EPS Next 2Y73.78%
EPS Next 3Y41.28%
NYSE:KREF (5/6/2025, 12:23:09 PM)
9.095
-0.14 (-1.57%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners61.87%
Inst Owner Change-0.49%
Ins Owners1.49%
Ins Owner Change9.09%
Market Cap616.73M
Analysts81.82
Price Target12.94 (42.28%)
Short Float %2.19%
Short Ratio2.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.99% |
Yearly Dividend1.49
Dividend Growth(5Y)-2.88%
DP803.52%
Div Incr Years0
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-205.28%
Min EPS beat(2)-233.84%
Max EPS beat(2)-176.72%
EPS beat(4)2
Avg EPS beat(4)-99.04%
Min EPS beat(4)-233.84%
Max EPS beat(4)7.74%
EPS beat(8)5
Avg EPS beat(8)-89.52%
EPS beat(12)7
Avg EPS beat(12)-63.51%
EPS beat(16)10
Avg EPS beat(16)-54.64%
Revenue beat(2)0
Avg Revenue beat(2)-7.01%
Min Revenue beat(2)-12.38%
Max Revenue beat(2)-1.64%
Revenue beat(4)1
Avg Revenue beat(4)-2.64%
Min Revenue beat(4)-12.38%
Max Revenue beat(4)7.66%
Revenue beat(8)2
Avg Revenue beat(8)-3.54%
Revenue beat(12)6
Avg Revenue beat(12)55.84%
Revenue beat(16)10
Avg Revenue beat(16)64.62%
PT rev (1m)-3.52%
PT rev (3m)-3.52%
EPS NQ rev (1m)-127.83%
EPS NQ rev (3m)-115.24%
EPS NY rev (1m)-1.31%
EPS NY rev (3m)-11.48%
Revenue NQ rev (1m)-8.32%
Revenue NQ rev (3m)-7.58%
Revenue NY rev (1m)0.83%
Revenue NY rev (3m)1.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 8.74 | ||
| P/S | 1.12 | ||
| P/FCF | 5.48 | ||
| P/OCF | 5.41 | ||
| P/B | 0.47 | ||
| P/tB | 0.47 | ||
| EV/EBITDA | 159.68 |
EPS(TTM)-1.56
EYN/A
EPS(NY)1.04
Fwd EY11.44%
FCF(TTM)1.66
FCFY18.25%
OCF(TTM)1.68
OCFY18.48%
SpS8.15
BVpS19.32
TBVpS19.32
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.17% | ||
| ROE | 0.86% | ||
| ROCE | 0.53% | ||
| ROIC | 0.4% | ||
| ROICexc | 0.4% | ||
| ROICexgc | 0.42% | ||
| OM | 5.83% | ||
| PM (TTM) | 2.04% | ||
| GM | 30.7% | ||
| FCFM | 20.36% |
ROA(3y)-0.1%
ROA(5y)0.53%
ROE(3y)-0.63%
ROE(5y)2.49%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y-34.98%
ROICexcg growth 5Y-19.95%
ROICexc growth 3Y-35.68%
ROICexc growth 5Y-20.67%
OM growth 3Y-50.23%
OM growth 5Y-29.01%
PM growth 3Y-62.88%
PM growth 5Y-41.56%
GM growth 3Y-20.56%
GM growth 5Y-6.79%
F-Score6
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.86 | ||
| Debt/FCF | 45.68 | ||
| Debt/EBITDA | 152.31 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0.09 | ||
| Cash Conversion | 343.38% | ||
| Profit Quality | 999.43% | ||
| Current Ratio | 0.27 | ||
| Quick Ratio | 0.27 | ||
| Altman-Z | 0.02 |
F-Score6
WACC6.8%
ROIC/WACC0.06
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-308%
EPS 3Y-55.99%
EPS 5Y-34.56%
EPS Q2Q%-138.46%
EPS Next Y188.17%
EPS Next 2Y73.78%
EPS Next 3Y41.28%
EPS Next 5YN/A
Revenue 1Y (TTM)-16.72%
Revenue growth 3Y26.7%
Revenue growth 5Y16.21%
Sales Q2Q%-19.94%
Revenue Next Year-5.68%
Revenue Next 2Y-2.16%
Revenue Next 3Y-5.77%
Revenue Next 5YN/A
EBIT growth 1Y450.08%
EBIT growth 3Y-36.94%
EBIT growth 5Y-17.51%
EBIT Next Year-10.5%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-24.78%
FCF growth 3Y1.66%
FCF growth 5Y7.41%
OCF growth 1Y-23.8%
OCF growth 3Y2.03%
OCF growth 5Y7.65%